CHIPS Incentives: Commercial Fabrication Facilities

CHIPS Incentives: Commercial Fabrication Facilities

Funds U.S. companies constructing, expanding, or modernizing commercial semiconductor fabrication facilities for leading-edge, current-generation, and mature-node chips.

Eligibility · United States — facilities must be constructed, expanded, or modernized in the U.S.

⚠ This may reflect a past cycle — verify the current call on the funder's site.

CHIPS Incentives NOFO 1 was issued by the CHIPS Program Office within the U.S. Department of Commerce in February 2023, representing the first major funding opportunity under the $39 billion semiconductor incentives program authorized by the CHIPS and Science Act (signed August 9, 2022). In June 2023, the scope was widened to include facilities for semiconductor materials and manufacturing equipment alongside the original fab-focused scope, where the capital investment equals or exceeds $300 million.

This NOFO had no published per-project award cap — amounts were negotiated based on project scope and national security need. Awards were structured as direct funding (grants) from the Department of Commerce. Multiple large awards followed: Intel received awards for fabs in Ohio, Oregon, and New Mexico; TSMC received an award for Arizona fabs; Samsung for Texas; and Micron for New York and Virginia sites, among others.

Eligibility was open to commercial fabrication facilities — effectively large, established semiconductor manufacturers — building or upgrading U.S. fab capacity. The $300 million capital investment threshold meant that startups and small businesses were not typical applicants; this was primarily for major semiconductor companies with large-scale construction plans.

The application closed June 18, 2024. No future rounds under this specific NOFO are planned — the separate NOFO 2 (Facilities for Semiconductor Materials and Manufacturing Equipment) was reopened in October 2025 for supply-chain applicants.

This program is closed and no new applications are being accepted.